Price Quotation Template

In plain language: Identifies the seller and buyer by full legal name, address, and primary contact, creating a clear record of who is bound by the quoted terms.

Common mistake: Using a trade name instead of the registered legal entity. If a dispute arises, the enforceable obligation runs to the legal entity, not the brand.

In plain language: Assigns a unique sequential reference number and records the date the quotation was prepared, enabling both parties to track revisions and match it to a purchase order.

Common mistake: Reusing or skipping quotation numbers across revisions. Numbering gaps create confusion in purchasing records and make it difficult to prove which version was accepted.

In plain language: States the exact date on which the quoted prices expire, protecting the seller from being held to outdated costs for materials, labor, or exchange rates.

Common mistake: Omitting a validity period entirely. Without one, courts in several jurisdictions have held that a quotation remains open for a 'reasonable time,' exposing the seller to historical pricing long after costs have changed.

In plain language: Lists every deliverable, product, or service with a quantity, unit price, and line total, so both parties understand exactly what is covered and at what cost.

Common mistake: Using a single lump-sum line with no breakdown. A lump sum prevents the buyer from approving the quote through their procurement process and makes scope disputes almost inevitable.

In plain language: Specifies whether quoted prices are inclusive or exclusive of applicable taxes (sales tax, VAT, GST), shipping, duties, and any fuel or handling surcharges.

Common mistake: Quoting 'all-in' pricing without confirming the applicable tax rate. If the buyer is in a different jurisdiction, the actual rate may differ from what the seller assumed, leading to underbilling or disputes.

In plain language: States the payment schedule — deposit percentage, milestone payments, and final balance — and the accepted payment methods, protecting the seller's cash flow.

Common mistake: No deposit requirement for custom or high-cost work. A seller who begins production or mobilizes a crew without a deposit has no security if the buyer cancels before completion.

In plain language: Specifies when and where goods will be delivered or services completed, and identifies which party bears delivery risk and cost under the applicable shipping terms (FOB, CIF, etc.).

Common mistake: Stating a delivery date without conditioning it on receipt of the deposit or buyer-supplied materials. Sellers who miss an unconditioned delivery date can face breach-of-contract claims even when the delay was caused by the buyer.

In plain language: Explicitly lists what is not included in the quoted price — permits, disposal fees, travel costs, after-hours labor — to prevent scope creep and disputed change orders.

Common mistake: No exclusions clause at all. Without one, buyers routinely argue that adjacent tasks were implied in the scope, and resolving those disputes costs far more than the task itself.

In plain language: States any warranty covering workmanship or materials — duration, what is covered, and what voids it — giving the buyer assurance and limiting the seller's ongoing liability.

Common mistake: Promising a warranty with no stated duration or exclusions. An open-ended warranty can expose the seller to claims years after project completion.

In plain language: Provides a signature block for the buyer to formally accept all terms and identifies the jurisdiction whose law governs any dispute arising from the agreement.

Common mistake: Treating email confirmation as a valid acceptance without a written signature block. In several jurisdictions, email acceptance is legally sufficient, but courts still require clear evidence that the specific terms — not just the price — were accepted.

A price quotation is a formal document in which a seller offers to supply specific goods or services at a defined price, subject to stated terms and conditions. When a buyer accepts a quotation — typically by signing the acceptance block or issuing a matching purchase order — the quotation generally becomes a binding contract. It differs from a rough estimate, which is advisory and not binding.

A price quotation is generally legally binding once the buyer formally accepts it within the stated validity period. Acceptance can occur by signature, countersignature, or — in many jurisdictions — a written confirmation referencing the quotation number. The quotation must contain sufficiently definite terms (price, scope, parties) to constitute an enforceable offer. Consider consulting a lawyer if you are uncertain whether your acceptance mechanism meets local contract law requirements.

A price quotation is an offer document issued before the buyer commits — it invites acceptance and creates the contract upon acceptance. A proforma invoice looks like a standard invoice but is issued before delivery, typically for customs clearance, internal budget approval, or deposit requests. A proforma invoice does not create an accounts-receivable entry; a quotation, once accepted, authorizes the work or delivery and triggers a real payment obligation.

Thirty days is the most common validity period for service-based quotations. For work that depends on commodity materials, fuel costs, or foreign-currency pricing, 7–14 days is more appropriate. For very large or complex projects, some sellers extend to 60 or 90 days but reserve the right to revise for documented cost increases. Always state an exact expiry date rather than a general window.

For a quotation to create a binding contract, there must be clear evidence of the buyer's acceptance. A signature block is the most defensible mechanism. In practice, many businesses accept email confirmation, but this creates risk if the buyer later disputes which version of the terms they agreed to. For any quotation above $1,000 or involving custom work, a signed acceptance is strongly recommended.

A quotation is issued by the seller as an offer of price and terms. A purchase order is issued by the buyer to formally accept the quotation and authorize the seller to proceed. They document the same transaction from opposite sides. Both should reference each other by number so accounting and procurement teams can match them as a pair.

You can revise pricing before the buyer accepts, by issuing a revised quotation with a new number or revision suffix (e.g., QT-2026-0047-R1). Once the buyer has formally accepted within the validity period, the original price is binding. After the validity period expires, you may issue a new quotation at updated prices. Including a validity clause is the primary mechanism for protecting against being locked into outdated costs.

Post-acceptance changes to scope, price, or timeline should be documented in a written change order or addendum that both parties sign before the additional work begins. Proceeding with verbal scope changes and billing for them later is one of the most common sources of payment disputes in project-based businesses. A simple change-order form that references the original quotation number is sufficient.

For straightforward transactions, a detailed signed quotation serves as the contract. For complex, long-term, or high-value engagements — or those involving IP, confidentiality, or significant liability — a separate master service agreement or project contract is advisable. The quotation then functions as a statement of work or schedule to that master agreement. A lawyer can advise on the appropriate structure for your specific situation.